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- Academic unit or major
- Undergraduate major in Industrial Engineering and Economics
- Instructor(s)
- Fukuda Emiko
- Class Format
- Lecture (HyFlex)
- Media-enhanced courses
- Day/Period(Room No.)
- Mon5-6(W933) Thr5-6(W933)
- Group
- -
- Course number
- IEE.B205
- Credits
- 2
- Academic year
- 2022
- Offered quarter
- 2Q
- Syllabus updated
- 2022/3/16
- Lecture notes updated
- -
- Language used
- Japanese
- Access Index
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Course description and aims
This course covers the elementary topics in non-cooperative game theory. These topics include (1) games in strategic form, dominated strategies, Nash equilibrium; (2) games in extensive form and subgame-perfect equilibrium; (3) repeated games and the Folk Theorem; and (4) evolutionary game theory.
In everyday life, people interact with each other. Game theory is a mathematical tool used in analyzing the interaction among rational decision makers. Its applications range throughout many topics in economics and management, and by applying this theory, additional insights may emerge. The objective of this course is for students to be able to apply the theory when examining topics of their interest in economics and industrial engineering.
Student learning outcomes
By taking this course, students will have attained the following skills:
1) Build an economic model using non-cooperative game theory.
2) Calculate Nash equilibria, subgame-perfect equilibria, etc. of games given in strategic form and extensive form.
3) Think logically and explain social phenomenon using game theory.
Keywords
Games in strategic form, Nash equilibrium, games in extensive form, subgame-perfect equilibrium, Bayesian games, Perfect Bayesian equilibrium, evolutionary game theory
Competencies that will be developed
| ✔ Specialist skills | Intercultural skills | Communication skills | Critical thinking skills | Practical and/or problem-solving skills |
Class flow
This class will be held in lecture form. If time allows, some exercise problems will be explained.
Course schedule/Required learning
| Course schedule | Required learning | |
|---|---|---|
| Class 1 | Games in strategic form (1) - Definition of a game, game in (bi)matrix form, dominated strategies | Details will be given in each lecture. |
| Class 2 | Games in strategic form (2) - Zero-sum games, maximin strategies, minimax strategies, Minimax Theorem | |
| Class 3 | Games in strategic form (3) - Rationalizable strategies, best response, Nash equilibrium | |
| Class 4 | Games in strategic form (4) - Review, applications | |
| Class 5 | Games in extensive form (1) - Game tree, information set, strategy | |
| Class 6 | Games in extensive form (2) - Subgame, Subgame-perfect equilibrium, games with perfect information, backwards induction | |
| Class 7 | Games in extensive form (3) - Applications, games with imperfect information | |
| Class 8 | Review of Lectures 1-7, midterm exam | |
| Class 9 | Repeated games (1) - Finitely repeated games, component games, strategies in repeated games | |
| Class 10 | Repeated games (2) - Infinitely repeated games, Folk Theorem | |
| Class 11 | Games with incomplete information (1) - Incomplete information, Bayesian games, types, Bayesian-Nash equilibrium | |
| Class 12 | Games with incomplete information (2) - Perfect Bayesian equilibrium, belief, consistency, sequential rationality | |
| Class 13 | Games with incomplete information (3) - Adverse selection, signaling, screening | |
| Class 14 | Evolutionary game theory - Basic concepts, evolutionary stable strategies (ESS), applications |
Out-of-Class Study Time (Preparation and Review)
To enhance effective learning, students are encouraged to spend approximately 100 minutes preparing for class and another 100 minutes reviewing class content afterwards (including assignments) for each class.
They should do so by referring to textbooks and other course material.
Textbook(s)
Muto, S. Introduction to Game Theory. Tokyo: Nikkei Publishing Inc., 2001. (Japanese)
Reference books, course materials, etc.
Funaki, Y. Exercises in Game Theory. Tokyo: Saiensu-sha Co. Ltd. Publishers, 2004. (Japanese)
Muto, S. Game Theory. Tokyo: Ohmsha, 2011. (Japanese)
Greve, T. Non-Cooperative Game Theory. Tokyo: Chisen-shokan, 2011. (Japanese)
Assessment criteria and methods
Homework (approximately 30%), Midterm exam and Final exam (approximately 35% each).
Related courses
- IEE.B201 ： Microeconomics I
- IEE.B202 ： Microeconomics II
- IEE.B206 ： Experimental Economics
- IEE.B302 ： Cooperative Game Theory
- IEE.A201 ： Basic Mathematics for Industrial Engineering and Economics
Prerequisites (i.e., required knowledge, skills, courses, etc.)
No prerequisites.
